Barakah to provide welding services for Murphy's drilling and subsea programme.
KUALA LUMPUR: Barakah Offshore Petroleum Bhd
, which saw its net profit rose 55.5% to RM7.21mil in the second quarter ended June 30 from RM4.63mil previously, expects the outlook for the oil and gas industry to remain challenging.
The O&G service provider said despite the slight improvement of the oil price, the outlook for the O&G industry was expected to remain challenging over the short to medium term.
“Nevertheless, the group endeavour to replenish its order book through actively participating in new bids and tenders in the local and international market.
“At the same time, the group is continuously improving on its operational efficiency and optimising its cost structure,” Barakah said in the notes accompanying its financial results.
Its revenue in the second quarter rose to RM136.9mil compared with RM123.8mil in the same period a year ago. Its earnings per share for the quarter rose to 0.87 sen from 0.58 sen last year.
In the first six months, Barakah reported a total revenue of RM240.26mil, a decrease of 23.68% from the corresponding preceding year. Its net profit plunged to RM8.48mil from RM19.7mil a year ago.
The decrease in revenue was mainly due to the reduction in revenues generated from the pipeline services and hook-up commissioning services.
Barakah said the revenue generated from pipeline and commissioning services during the current financial period ended June 30 amounted to RM77.25mil, out of which RM56.13mil was generated during the current quarter.
“This is a decrease of 13.96% from the corresponding quarter of the preceding year, as a result of lesser work orders received for the pre-commissioning works during the current quarter compared to the corresponding quarter of the preceding year,” it explained.
Limited time offer:
Just RM5 per month.
